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“Michael Covel’s Trend Following: Essential.”
--Ed Seykota, trend follower for 35 years and original Market Wizard
“A mandatory reference for anyone serious about alternative investments.”
--Jon Sundt, president and CEO, Altergris
“Michael Covel does an excellent job of educating his readers about the little-known opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor.”
--Christian Baha, founder and owner, Superfund
“Covel has created a very rare thing--a well documented and thoroughly researched book on trend following that is also well written and easy to read. This is one book that traders at all levels will find of real value.”
--John Mauldin, Thoughts from the Frontline
The Investment Strategy That Keeps on Making Money While Everyone Else Is Losing It:
How Trend Followers Made a Fortune During the 2008 Stock Market Crash
Did your buy and hold investments survive the crash of 2008? While many were getting hammered, trend followers were earning profits ranging all the way up to +40% for the month of October 2008 alone!
Now, the #1 guide to trend following has been thoroughly updated to reflect 2008’s cataclysmic events. Michael W. Covel reveals exactly how the trend followers achieved those amazing results. Using simple, up-to-the-minute charts from top traders, he doesn’t just prove this strategy works: He shows why only a technical system based on following price trends can win over the long term.
Best of all, he shows you exactly how to apply the same strategies in your own portfolio--so you, too, can keep on profiting no matter what happens next!
For more than 30 years, trend following has been the one trading strategy that’s consistently delivered extraordinary profits in bull and bear markets. While most investors were losing a fortune in the 2008 stock market collapse, stuck in buy and hold investments, trend followers were earning huge profits...up to a whopping +40% in the single month of October 2008! The proof’s in this book: brand-new data you can view for yourself, plus all the information you need to know to utilize the same timeless strategies in your portfolio.
In this fully updated edition, trend following expert Michael Covel introduces the traders and fund managers who’ve been using this strategy for decades, adding brand-new profiles such as David Harding, who manages $10 billion plus dollars through his London-based trend following firm. Then, Covel walks you through all the concepts and techniques you need to use trend following yourself. One step at a time, one simple chart at a time, you’ll learn how to understand price movements well enough to profit from them consistently--in any market.
Today, you need trend following more than ever. Read this book, and put it to work for you!
Foreword by Larry Hite xiii
Preface xvii
Part I
1 Trend Following 3
2 Great Trend Followers 27
Part II
3 Performance Data 97
4 Big Events, Crashes, and Panics 123
5 Baseball: Thinking Outside the Batter's Box 181
Part III
6 Human Behavior 193
7 Decision Making 211
8 Science of Trading 221
9 Holy Grails 231
Part IV
10 Trading Systems 247
11 The Game 277
Afterword 285
Foreword to the First Edition by Charles Faulkner 299
Appendices
Introduction to Appendices 305
A Trend Following for Stocks 307
B Performance Guide 347
C Short-Term Trading 375
D Personality Traits of Successful Traders 377
E Trend Following Models 381
F Trading System Example from Mechanica 385
G Critical Questions for Trading Systems 395
Resources 397
Endnotes 399
Bibliography 423
Index 431
Anonymous
Posted December 4, 2008
Michael Covel is a good writer. I found this book to be fun to read and somewhat entertaining. It introduces you to big names that use trend following. Unfortunately, this book never really gives you any details on how to implement trend following models, except for two or three pages in one of the appendices. Actually, it seems that every chapter has to defend the validity of trend following. Given the entertaining writing syle, and the lack of details, I would have to limit this book to entertainment value. You won't be able to trade using trend following after reading this book. You will have a cursory idea of what the topic is and some of the arguments for and against the technique. A few trading tools are presented in the appendices, but they are either very expensive or require large brokerage accounts to gain access to them. Thus, not very helpful for someone starting out.
1 out of 1 people found this review helpful.
Was this review helpful? Yes NoThank you for your feedback. Report this reviewThank you, this review has been flagged.Anonymous
Posted January 7, 2008
The basic premise is that while you cannot 'predict' the market, you can 'react' quickly to it. Rather like surfing: you see a wave developing, ride it as far as you can, and jump off just before the wave breaks. This book is full of information based on the success of real-life trend followers. You have to read between the lines and formulate your own trading system from the information given. It is not for example a set of 5 concrete rules for when to buy and sell.
1 out of 1 people found this review helpful.
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Posted April 17, 2011
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Posted July 3, 2011
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Posted June 26, 2011
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Overview
“Michael Covel’s Trend Following: Essential.”
--Ed Seykota, trend follower for 35 years and original Market Wizard
“A mandatory reference for anyone serious about alternative investments.”
--Jon Sundt, president and CEO, Altergris
“Michael Covel does an excellent job of educating his readers about the little-known opportunities available to them through one of the proven best hedge fund strategies. This book is like gold to any smart investor.”
--Christian Baha, founder and owner, Superfund
“Covel has created a very rare thing--a well documented and thoroughly researched book on trend following that is also well written and easy to read. This is one book that traders at all levels will ...